MTC considers extending online marketplace seller tax amnesty program

Update: The application period for the online marketplace seller voluntary disclosure initiative has been extended. Instead of closing on Oct. 17, it will close Nov. 1, 2017.

In response to requests by online marketplace sellers, the Nexus Committee of the Multistate Tax Commission (MTC) has decided to consider extending the application period for the online marketplace seller voluntary disclosure initiative, currently set to close Oct. 17, 2017. The committee will hold an emergency meeting to discuss that possibility on Wednesday, Oct. 11, 2017, at 2:30 p.m. EST.

The online marketplace seller voluntary disclosure initiative is a special limited-time tax amnesty program that began Aug. 17, 2017. It’s open only to online marketplace sellers that have inventory stored in a third-party fulfillment center(s) in one or more of the participating states, but no other tie to those states that creates nexus (the obligation to collect tax). For accepted applicants that register with the state and collect and remit all applicable taxes beginning Dec. 1, participating states will waive some or all back sales and use and/or income or franchise tax.

Alabama, Arkansas, Connecticut, Florida, Idaho, Iowa, Kansas, Kentucky, Louisiana, Missouri, New Jersey, North Carolina, Oklahoma, Rhode Island, South Dakota, Tennessee, Texas, Utah, and Vermont are waiving all applicable back taxes. Colorado, Massachusetts, Minnesota, Nebraska, Washington, D.C., and Wisconsin are offering limited amnesty. See the MTC website or the Avalara Resource Center for more details.

The public is invited to comment on the following agenda items:

• A possible extension of the Oct. 17 application deadline for the current online marketplace seller voluntary disclosure initiative
• A possible extension of the Dec. 1 deadline for returning the signed agreement and registering with the state

The committee may also allow the public to make general comments before or during the discussion of specific agenda items.

Interested in learning more about the meeting? Read about the details and get contact information for Richard Cram, Director of the MTC National Nexus Program, in this MTC Public Notice and Agenda.